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Completing a Balance Sheet and Income Statement

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(See attached file for full problem description)

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Current Ratio 1.09 1.41
Quick Ratio 0.60 1.00
Total Debt Ratio 48.00% 77.80%
TIE 6.20 3.20
BEP N/A N/A
FATO N/A N/A

You have been given the following information. Complete a Balance Sheet and Income Statement for 2005. All figures are in millions. Also briefly explain in one paragraph what you learned after solving about this country?

Sales will be $3,000 for the year. Accounts Receivable will be 10% of sales. Selling General and Administrative Expense will be $500 for the year, and COGS will be 67% of sales. The company has $750 in long-term debt, and pays 8% interest on this debt. It has a 35% combined tax rate, and depreciation expense of $130. 2004's accumulated depreciation was $780, and gross fixed assets were $2100. Inventory was $550, and total liabilities and stockholders equity were $2,390. NOWC totaled $548, with 50% of current liabilities in Accruals and 50% in A/P. Last year, Retained Earnings totaled $440. The company has only common stock, no preferred.

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Solution Summary

This provides the steps to complete a Balance Sheet and Income Statement if the ratios are given.

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See attached file for full problem description)

---
Current Ratio 1.09 1.41
Quick Ratio 0.60 1.00
Total Debt Ratio 48.00% 77.80%
TIE 6.20 3.20
BEP N/A N/A
FATO N/A N/A

You have been given the following information. Complete a Balance Sheet and Income ...

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